Indian money managers warm up to Islamic finance

[LahoreEstate]

Indian money managers warm up to Islamic finance



Friday, February 06, 2009
MUMBAI/KUALA LUMPUR: Money managers in India have begun launching Sharia-compliant funds, hoping to tap the country’s large Muslim population, the world’s third-biggest after Indonesia and Pakistan.

The push towards the new funds comes in the wake of dwindling cash flows into more traditional investment channels, which have been hit by a stock market slump and slowing economic growth.

In January, the portfolio management services unit of HSBC’s Indian fund arm started offering a Sharia product, and on Wednesday Mumbai-based Benchmark Asset Management launched India’s first exchange-traded Sharia fund.

“There is a need gap...for investment products that are Sharia-compliant,” said Vikramaaditya, chief executive of HSBC Asset Management.

Zafar Sareshwala, chief executive of Mumbai-based Islamic brokerage Parsoli, said Sharia-compliant funds could easily raise $1 billion from millions of potential Muslim investors.

http://www.thenews.com.pk/daily_detail.asp?id=161012